ndia’s benchmark indices ended the week gone by on a strong note, led by a sharp upmove on Friday. Sensex finished 523 points higher at 34,731, posting weekly gains of over 2.8%. The broader NSE Nifty 50 index on Friday closed up 1.51% at 10,244, boosted by a sharp up move in Reliance Industries shares after the petrochemical-to-telecoms conglomerate said it was net-debt free.
The market participants are gaining confidence and Foreign Institutional Investors (FIIs) have started to put money into the markets again.
Going forward, in absence of any major event except the earnings season, the markets would continue to take cues from global markets.
Globally, the US will once again witness the fervour of presidential campaigns. US President Donald Trump is resuming campaign rallies while the coronavirus pandemic continues to intensify across several states and while protests against police brutality continue.
Democrats are eagerly awaiting former-VP Biden’s decision on his running mate.
With the UK economy continuing to feel the devastating effects of the coronavirus pandemic and lockdown that it forced, the Bank of England expanded its asset purchase facility this week by another £100 billion, taking the total to £745 billion.
Brexit negotiations are going to intensify between now and the end of July in the hope that significant progress can be made on some of the more contentious issues, with the end of year deadline fast approaching.
Leaders will discuss the draft 2021-27 budget for the first time on Friday but no breakthrough is expected, with the “frugal four” still strongly against the inclusion of grants, rather believing that the recovery fund – which will be raised in the market by the European Commission – should be repaid in full.
Monday China announces its one and five-year loan prime rate decisions. Expected unchanged but a surprise cut could boost markets across the region.
No other significant data this week.
Indian markets may extend gains next week due to the gradual reopening of the economy but say that investors need to be watchful of geopolitical tensions and rising coronavirus cases.
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